have we done the right thing?...

mrsdoubleyou

hello, i'm a newbie here...so i hope this is the correct posting place!

anyway, we have £3500 over 2 credit cards and the interest is horrendus, so we have extended the bank overdraft and cleared both credit cards, so now we have a massive overdraft limit, as i too had extended my overdraft without my spouse knowledge. so all the debt is in one place .. at the bank.

i'm rubbish at saving etc so just want someone tell me have we done the right thing?


tia

cifpower

What were the interest rates (APRs) of the credit cards and what is the APR of the overdraft?

RayWolfe

Banks can call in an overdraft without notice and for no particular reason. A loan may have been better.

Nigella_2

If you cut up the cards or get the balance lowered dramatically!!!

Now might be worth looking at personal loan rates if your Overdraft Rates are high. (and cancel or reduce your overdraft)

Extant

For the reason RayWolfe said, no.

Overdrafts are meant for short term cash flow, not for permanent use. Expect it to either be called in at some point, or for your internal rating to be trashed.